Mizuho raised the firm’s price target on Hershey (HSY) to $195 from $180 and keeps a Neutral rating on the shares after Bloomberg reported Mondelez Mondelez (MDLZ) is exploring an acquisition of the company. The firm views the benefits for Mondelez as significant scale in U.S. sweet snacks, a more diversified U.S. sugar confection portfolio and key brands enhancing sweet baked goods expansion. However, Hershey could prove revenue growth dilutive with areas of limited cost synergies and modest international revenue synergies, the analyst tells investors in a research note. Mizuho assumes a $230 per share takeout price target for Hershey.
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